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Principles
Chapter 10 · 1.5 min · 11 of 34

Use the 5-step process to get what you want out of life

A chapter summary from Principles by Ray Dalio.

Getting what you want out of life is not one decision.

— From Principles by Ray Dalio

Getting what you want out of life is not one decision. It is a five-step loop you run continuously, and the five steps require genuinely different kinds of thinking — which is why most people, and most teams, are naturally strong at only one or two of them and weak at the rest.

Step one is having clear goals — the outcomes you genuinely want, distinct from the goals you think you're supposed to want or the ones that would impress an audience. Vague or borrowed goals produce vague or borrowed effort. Step two is identifying the problems standing between you and those goals and refusing to treat them as background noise you've simply learned to live with. Most people are remarkably good at not-noticing a problem once they've gotten used to it.

Step three is diagnosis: tracing a problem to its actual root cause rather than patching the symptom that happens to be visible today. A missed deadline is a symptom; the root cause might be an unclear priority, a skills gap, or a process nobody owns. Fix the symptom and it returns in a new costume next month. Step four is design — building a specific plan that addresses the root cause, which usually means changing a system or a habit, not just trying harder at the same thing that already failed.

Step five is doing: pushing the plan through to completion with enough discipline that it actually produces results, and tracking those results honestly enough to know whether the plan worked. When outcomes diverge from what you expected — and they usually do, at least partly — the loop restarts at step one or two with better information than you had the first time around.

What makes this demanding is that it removes your excuses. You can't blame luck indefinitely if you keep refining the machine that produces your results. But that's also what makes it liberating: progress stops being mysterious or dependent on talent you may or may not have, and becomes a repeatable practice — sometimes slow, sometimes uncomfortable, but compounding steadily as long as you keep running the loop instead of stalling at step one.

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